Bitcoin’s $87,000 rally just flipped from short squeeze to long risk
Bitcoin remains in a broader uptrend after reaching an eight-month high near $87,400, but signs of fading momentum are building. CryptoQuant estimates spot demand fell by about 170,000 BTC over 30 days, while futures-demand growth and ETF inflows also weakened. Meanwhile, short-term holders’ unrealized profits rose and investors realized a record 25,700 BTC in profits on Sept. 22. Futures account for most Binance trading, though open interest and leverage have declined. A recent rally liquidated major short positions, leaving more liquidation risk concentrated among longs. The shift does not confirm a market top, but sustaining gains may require stronger spot buying. Bitcoin’s 365-day moving average near $80,000 is a key test; below it, support lies near $71,000 and $67,000.
